Common use of Accounting Terms; Utilization of GAAP for Purposes of Calculations Clause in Contracts

Accounting Terms; Utilization of GAAP for Purposes of Calculations. Under ------------------------------------------------------------------------ Agreement. ---------- Except as otherwise expressly provided in this Agreement, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. Financial statements and other information required to be delivered by Company to Lenders pursuant to clauses (i), (ii), (iii) and (xiii) of subsection 6.1 shall be prepared in accordance with GAAP as in effect at the time of such preparation (and delivered together with the reconciliation statements provided for in subsection 6.1(v)). Calculations in connection with the definitions, covenants and other provisions of this Agreement shall utilize accounting principles and policies in conformity with those used to prepare the December 31, 1998 financial statements referred to in subsection 5.3. Notwithstanding the foregoing, except as otherwise specifically provided herein, all computations determining compliance with subsection 2.4 and Section 7, and the calculation of the Total Leverage Ratio, the Leverage Ratio and Revolving Leverage Ratio for all purposes set forth herein, in each case, including the definitions used therein, shall utilize accounting principles and policies in effect at the time of the preparation of, and in conformity with those used to prepare, the December 31, 1998 financial statements of Holdings and its Subsidiaries delivered to the Lenders, but shall not give effect to purchase accounting adjustments required or permitted by APB 16 and its interpretations (including non-cash write-ups and non-cash charges relating to inventory, fixed assets and in-process research and development, in each case arising in connection with any Permitted Acquisitions) and APB 17 and its interpretations (including non-cash charges relating to intangibles and goodwill arising in connection with any Permitted Acquisitions).

Accounting Terms; Utilization of GAAP for Purposes of Calculations. Under ------------------------------------------------------------------------ Agreement. ---------- Except as otherwise expressly provided in this Agreement, (a) all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. Financial ; and (b) financial statements and other information required to be delivered by Company ChipPAC to the Lenders pursuant to clauses (i), (ii), (iii) and (xiii) of subsection 6.1 shall be prepared in accordance with GAAP as without giving effect to Accounting Principles Board Opinions 16 and 17 with respect to any Permitted Acquisition. In the event that a change in effect at the time of such preparation (and delivered together with the reconciliation statements provided for in subsection 6.1(v)). Calculations in connection with the definitions, covenants and GAAP or other provisions of this Agreement shall utilize accounting principles and policies after the date hereof affects in conformity with those used to prepare any material respect the December 31, 1998 financial statements referred to in subsection 5.3. Notwithstanding the foregoing, except as otherwise specifically provided herein, all computations determining compliance with subsection 2.4 and Section 7, and the calculation calculations of the Total Leverage Ratio, the Leverage Ratio and Revolving Leverage Ratio for all purposes set forth herein, in each case, including the definitions used therein, shall utilize accounting principles and policies in effect at the time of the preparation of, and in conformity with those used to prepare, the December 31, 1998 financial statements of Holdings compliance by ChipPAC and its Subsidiaries delivered with the covenants contained herein, the Lenders and ChipPAC agree to negotiate in good faith to amend the affected covenants (and related definitions) to compensate for the effect of such changes so that the restrictions, limitations and performance standards effectively imposed by such covenants, as so amended, are substantially identical to the Lendersrestrictions, but shall not give limitations and performance standards imposed by such covenants as in effect on the date hereof; provided that if the Requisite Lenders and ChipPAC fail to purchase accounting adjustments required or permitted -------- reach agreement with respect to such amendment within a reasonably period of time following the date of effectiveness of any such change, calculation of compliance by APB 16 ChipPAC and its interpretations (including non-cash write-ups and non-cash charges relating Subsidiaries with the covenants contained herein shall be determined in accordance with GAAP as in effect immediately prior to inventory, fixed assets and in-process research and development, in each case arising in connection with any Permitted Acquisitions) and APB 17 and its interpretations (including non-cash charges relating to intangibles and goodwill arising in connection with any Permitted Acquisitions)such change.

Accounting Terms; Utilization of GAAP for Purposes of Calculations. Under ------------------------------------------------------------------------ Agreement. ---------- --------- Except as otherwise expressly provided in this Agreement, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. Financial statements and other information required to be delivered by Company to Lenders pursuant to clauses (i), (ii), (iii) and (xiii) of subsection 6.1 shall be prepared in accordance with GAAP as in effect at the time of such preparation (and delivered together with the reconciliation statements provided for in subsection 6.1(v)). Calculations in connection with the definitions, covenants and other provisions of this Agreement shall utilize accounting principles and policies in conformity with those used to prepare the December 31, 1998 financial statements referred to in subsection 5.3. Notwithstanding the foregoing, except as otherwise specifically provided herein, all computations determining compliance with subsection 2.4 and Section 7, and the calculation of the Total Leverage Ratio, the Leverage Ratio and Revolving Leverage Ratio for all purposes set forth herein, in each case, including the definitions used therein, shall utilize accounting principles and policies in effect at the time of the preparation of, and in conformity with those used to prepare, the December 31November 30, 1998 1996 financial statements of Holdings and its Subsidiaries delivered to the Lenders, but shall not give effect to purchase accounting adjustments required or permitted by APB 16 and its interpretations (including non-cash write-ups and non-cash charges relating to inventory, fixed assets and in-process research and development, in each case arising in connection with any Permitted Acquisitions) and APB 17 and its interpretations (including non-cash charges relating to intangibles and goodwill arising in connection with any Permitted Acquisitions).

Accounting Terms; Utilization of GAAP for Purposes of Calculations. Under ------------------------------------------------------------------------ Agreement. ---------- Except as otherwise expressly provided in this Agreement, (a) all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. Financial ; and (b) financial statements and other information required to be delivered by Company ChipPAC to the Lenders pursuant to clauses (i), (ii), (iii) and (xiii) of subsection 6.1 shall be prepared in accordance with GAAP as without giving effect to Accounting Principles Board Opinions 16 and 17 with respect to any Permitted Acquisition. In the event that a change in effect at the time of such preparation (and delivered together with the reconciliation statements provided for in subsection 6.1(v)). Calculations in connection with the definitions, covenants and GAAP or other provisions of this Agreement shall utilize accounting principles and policies after the date hereof affects in conformity with those used to prepare any material respect the December 31, 1998 financial statements referred to in subsection 5.3. Notwithstanding the foregoing, except as otherwise specifically provided herein, all computations determining compliance with subsection 2.4 and Section 7, and the calculation calculations of the Total Leverage Ratio, the Leverage Ratio and Revolving Leverage Ratio for all purposes set forth herein, in each case, including the definitions used therein, shall utilize accounting principles and policies in effect at the time of the preparation of, and in conformity with those used to prepare, the December 31, 1998 financial statements of Holdings compliance by ChipPAC and its Subsidiaries delivered with the covenants contained herein, the Lenders and ChipPAC agree to negotiate in good faith to amend the affected covenants (and related definitions) to compensate for the effect of such changes so that the restrictions, limitations and performance standards effectively imposed by such covenants, as so amended, are substantially identical to the Lendersrestrictions, but shall not give limitations and performance standards imposed by such covenants as in effect on the date hereof; provided that if the Requisite Lenders and ChipPAC fail to purchase accounting adjustments required or permitted -------- reach agreement with respect to such amendment within a reasonable period of time following the date of effectiveness of any such change, calculation of compliance by APB 16 ChipPAC and its interpretations (including non-cash write-ups and non-cash charges relating Subsidiaries with the covenants contained herein shall be determined in accordance with GAAP as in effect immediately prior to inventory, fixed assets and in-process research and development, in each case arising in connection with any Permitted Acquisitions) and APB 17 and its interpretations (including non-cash charges relating to intangibles and goodwill arising in connection with any Permitted Acquisitions)such change.