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
1
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 Provision Two of this
Agreement, Party A and its other authorized organizations of Bank
of China will first examine and approve as well as arrange the
financing application of Party B: with regard to each specific
financing business, Party A and its other authorized organizations
of Bank of China will examine such business in accordance with its
internal requirements, and when the requirements are met, Party A
and Party B will individually sign relevant legal documents. With
regard to the issue of credit or pledge and hypothecation for
financing, Party A and its other authorized organizations of Bank
of China will make decisions on such issue in accordance with
specific business conditions.
(II) Upon request of Pa
