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BANK AND COMPANY COOPERATION AGREEMENT

Cooperation Agreement

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This Cooperation Agreement involves

MULTI FINELINE ELECTRONIX INC

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Title: BANK AND COMPANY COOPERATION AGREEMENT
Date: 5/12/2005

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Bank and Company Cooperation Agreement

Exhibit 10.12

 

Bank and Company Cooperation Agreement

Wu Zhong Yin Zi No. 0361160

 

Party A: Bank of China Suzhou City Wuzhong Branch

 

Legal representative or person in charge: Liu Li

 

Residence: No. 110 Dongwu North Road, Suzhou

 

Method of contact: 65259268

 

Party B: Multi-Fineline Electronix (Suzhou) Co., Ltd.

 

Legal entity business license No.: 005874

 

Legal representative: Xu Jiading

 

Residence: Suning Industrial District, Wuzhong Economic Development Zone

 

Method of contact: 65638146

 

In order to develop a long-term, stable and mutually beneficial business cooperation relationship, Party A and Party B have reached the following intention for cooperation through negotiations in accordance with the principle of free will, equality, mutual benefit and integrity:

 

Provision One        Opening and Retaining Bank Account

 

Party A and Party B have reached an agreement through negotiations that Party B shall select Party A as the lead bank to conduct its financial business. Party B will open and retain corresponding account(s) at Party A.

 

Provision Two        Credit Extension and Financing Arrangement

 

Party A agrees that, under the conditions of meeting the internal risk management system of Party A and of execution in accordance with the relevant business operation procedures of Party A, the total balance that Party B gets from Party A for various credit extensions and financing arrangements (when

 

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converted into RMB) may reach but shall not exceed (in words) 165 million yuan, in which 60 million yuan shall be used for Plant 1; 40 million yuan shall be used for Plant 2; and 65 million yuan shall be used for Plant 3. The total credit extension investment from Party A shall match the registered capital investment as made by Party B for Plant 2 and Plant 3.

 

The credit extension and financing as mentioned in the previous paragraph refer to various loans, draft acceptance, security, establishment of letter of credit to external parties and other forms of fund accommodations and credit support, and Party A agrees on the request of Party B for earlier return of the loans.

 

Provision Three        Service Content of Party A

 

(I) In order to implement the credit extension and financing arrangement as mentioned in Provisi

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