Exhibit 10.3
(Mortgage Contact No.
4403402912009110028 loan contract)
China Development Bank Co.,
Ltd.
RMB capital loan
Mortgage contract
Mortgagor: Shenzhen Diguang Electronics Co.,
Ltd.
Mortgagee: China Development Bank Co.,
Ltd.
Mortgagor: Shenzhen Diguang
Electronics Co., Ltd.
Address: 23
rd Floor, Galaxy Century Building A, No.3069,
Caitian Road, Futian District, Shenzhen
Legal Representative: Yi
Song
Responsible Person: Mingbo
Ge
Mortgagee: China Development Bank
Co., Ltd.
Address: 29
th Fuchengmenwai Dajie, Xicheng District,
Beijing
Legal Representative: Yuan
Chen
Administering Branch: China
Development Bank Co., Ltd, Shenzhen Branch
Branch Address: 12-15
th floor, Citic Building, No.1093, Shennan
Road
Branch Representative: Xiaoping
Yu
Branch Responsible Person: Yonghong
Deng
To ensure that the borrower (“Shenzhen
Diguang Electronics Co., Ltd.”), fulfills its loan contract
(No. 4403402912009110028) signed with the Mortgagee (hereinafter
referred to as the “Main Contract”), the Mortgagor is
willing to mortgage property listed in the list of collateral (See
Annex 1) for providing guarantee to the Mortgagee. The Mortgagor
and the Mortgagee have reached an agreement to conclude this
contract.
Except for the other special stipulation in this
contract, the definitions related to the terms in this contract are
the same as the Main Contract.
The names and the related information of these
guaranties under this contract are shown in Annex 1
hereto.
Under the Main Contract, the borrower borrows
RMB30 million that is thirty million Yuan from the Mortgagee for
one year, that is from the draw down date to the first anniversary
of such date.
The scope of guarantee in this contract includes
the principal, interest, default interest, compensation, liquidated
damages, damage award for a portion of the loan borrowed in the
amount of 16.766669 million Yuan and the expenses to realize the
mortgage right.
With the repayment of the principal amount
borrowed under the Main Contract, the principal amount secured
under this contract reduces correspondingly.
4. Representations and Warranties
given by the Mortgagor
(A) The Mortgagor is a legal person
established according to the law, who owns the valid business
license, possesses its assets and operates its business in
accordance with the law.
(B) The Mortgagor legally possesses
the ownership or the disposition of the collateral. If the
collateral belongs to the property that can be mortgaged upon the
approval or consent of the parties concerned in accordance with the
law, the Mortgagor ensures the validity of its approval or consent;
there is no dispute of ownership or disposition concerning the
collateral.
(C) Except for the mortgage defined
in this contract, there is no forms of security, leasing,
trusteeship, jointly-owned or other ownership disputes of the
collateral;
(D) In order to sign the contract,
the Mortgagor has completed all the required authorization
procedures which is legitimate and effective.
(E) All documents and data provided
by the Mortgagor must be true, accurate and complete.
The above representations and
warranties are valid for the duration of the contract.
5. Obligations of the
Mortgagor
(A) The Mortgagor should take good
care of the collateral, and accept the check to be made by the
Mortgagee at any time. For the proposal suggested by the Mortgagee
for the purpose of ensuring good collateral during an inspection,
the Mortgagor should take corresponding measures in time. All the
costs of custody and maintenance should be borne by the
Mortgagor.
(B) Without the written consent of
the Mortgagee, the Mortgagor shall not dispose of collateral in any
way.
(C) If the Mortgagor intends to
change the business name, domicile, legal representative,
registered capital, business scope, company type, articles of
incorporation, the Mortgagee shall be notified 10 days in writing
in advance, and be reported with the related documents for
records.
(D) Within three working days after
registration of collateral, the Mortgagor should deliver the
property (dispo
