(1) The investor shall bring his/her securities passbook to its issuing securities firm and fill up the "Application of Book-entry Transfer for the Conversion (Exchange)/Repurchase (Redemption/Reverse Repurchase)/Cancellation/Subscription/Fulfillment/Redemption of Securities," as well as affix the form with the seal or signature identical to the one on the specimen card in order to convert (exchange), redeem, or reverse repurchase convertible (exchangeable) bonds and redeem beneficiary certificates and depositary receipts via book-entry transfer.

(2) The conversion of convertible bonds can now be handled electronically by the securities firms. However, this operation is not available at some securities firms. Inventors shall contact their securities firms to find out whether the transaction can be processed electronically.

Upon the maturity of the convertible (exchangeable) bonds, TDCC would notify the issuing company of the bondholders list per issuing company's request. Investors do not have to make applications to the issuing company.

1. The issuer shall open an "exchangeable bond account" (account type 41) under its central depository account and transfer the underlying stocks into this account for central depository purpose.
2. The issuer shall inform the centralized securities depository enterprise the following matters before issuing the exchangeable bond: (1) Approval documents issued by the competent authority (except for exchangeable bonds issued by the central government); (2) Issuance terms and the rules of public announcement and issuance; (3) Exchange price or adjusted exchange price; (4) Exchange suspension period; (5) Buy back/redemption period; and (6) Other requirements associated with exchange. Issuer shall notify the centralized securities depository enterprise of any changes to the aforementioned matters three business days prior to the effective date.
3. During the exchange period stipulated by the issuers, exchangeable corporate bond holders may present their securities passbooks and seal/signature-of-record to their participants to apply for an exchange of their bonds. The centralized securities depository enterprise will e-mail the exchange application data to the issuer or its transfer agent on the business day following the application date.
4. Once the issuer or its transfer agent has verified the information from the centralized securities depository enterprise, it would execute the "Exchangeable Bond Transfer" transaction (transaction code 259) within the period prescribed by the competent authority to provide relevant information to the centralized securities depository enterprise.
5. After the centralized securities depository enterprise confirms the data entered by the issuer or its shareholder services agent against the applicant's application, it would transfer the underlying stocks from the issuer's exchange account to the applicant's central depository account, and prepare and email the "Details of Underlying Stocks of Exchangeable Corporate Bonds Transferred" (report code ST120) to the issuer or its shareholder services agent on the business day following the stock transfer.