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Yayi International Inc.: Exhibit 10.34 - Filed by newsfilecorp.com

Exhibit 10.34 

TIANJIN RURAL COOPERATIVE BANK 

Form of Loan Agreement 

(English Translation) 

 

The Borrower (Party A): Tianjin Yayi Industrial Co., Ltd. 

 

The Lender (Party B): Tianjin Rural Cooperative Bank Kexing Branch 

 

The Borrower (Party A): Tianjin Yayi Industrial Co., Ltd. 

Address: Block D1CXinmao Science
and Technology Park, Huayuan Industrial Park, Tianjin, China. 300384 

Legal representative: Li Liu 

The Lender (Party B): Tianjin Rural Cooperative Bank Kexing Branch 

Address: 11086# Yinshui Road, Huayuan Industrial Park, Tianjin, China. 300384

Legal representative (person in charge): Liqiang Cao 

Chapter1. General provisions 

Due to the desire of business operation, Party A applies the loan from Party
B. Pursuant to its review, Party B grants the loan according to the provisions
and conditions of this contract. 

To evidence both parties’ rights and duties, Party A and B have entered into
the following agreement after negotiation in accordance with relevant laws and
regulations of China. 

Chapter 2. Use of the Loan 

Article1. Pursuant to the negotiation of both parties: 

1.1 The loan under this contract shall only be used as working capital. 

  1.2 Without party B’s written consent, party A may not change the use of
  the loan under the contract. 

Chapter 3. Currency, Amount and Term of the Loan 

Article2. The currency of the loan under the contract is RMB, in amount of
8,000,000 yuan. 

Article3. The term of the loan under the contract is 12 months from June 3,
2010 till June 2, 2011. 

Article4. Subject to Article 11 of this contract, Party B should disburse the
loan at one time to Party A’s account opened with Party B on June 3rd,
2010. The interest of loan shall be calculated starting on the date of
disbursement of the loan to Party A. 

Chapter 4. Interest Rate of the Loan and Interest Calculation 

Article5. Party A should pay the interest of the loan to Party B according to
the contract. The monthly interest rate of the loan under the contract is
0.48675%. 

After the execution of the contract but before the
disbursement of the loan, if the People’s Bank of China adjusts the benchmark
interest rate, which is applicable to the loan under this contract, Party B has
the right to adjust the interest rate according to Article 8 of this contract.

Article6. If Party A does not repay the principal of the loan
under the contract, Party B is entitled to charge an additional 50% of the
contracted interest rate as the overdue penalty interest starting on the date of
overdue until Party A pays off all the principal and accrued interest of the
loan. 

If Party A does not use the loan in a way set forth in this
contract, Party B is entitled to charge an additional 100% of the contracted
interest rate as the penalty interest starting on the date of misuse until Party
A pays off all the principal and accrued interest of the loan. 

Article7. Under the contract, the interest of the loan shall be paid on a
quarterly basis on the 20th day of the last month of each quarter.

Article8. After the loan has been issued, the interest rate of the loan will
be the same if the People’s Bank of China adjusts the benchmark interest rate.

2

Article9. The calculation of interest is on the basis of 365 days annually
and starts on the date when the loan is actually disbursed. 

Article10. If Party A fails to pay the interest promptly, Party B is entitled
to calculate compound interest according to the penalty interest rate. 

Chapter 5. Issue and use the loan 

Article11. Unless the following preconditions are met, Party B does not have
the obligation to provide the loan under the contract: 

1. Party A has provided all the
documents which Party B required, and there is no material change to the facts
disclosed in such documents or Party A has provided explanation of any changes
that is satisfactory to Party B. 

2. The Party A has filled in
certificate of the loan, which is an integral part of the contract with the same
legal effect as the loan contract. For conflicts between the loan contract and
the certificate of the loan with respect to the amount of the loan, term of the
loan and interest rate of the loan, the certificate shall prevail. 

3. Party A should obtain the
government permit, authorization, registration and complete other legal
procedures according to the relevant laws and regulations. If Party B requires
notarization of the contract, Party A should provide it. 

4. If the loan under the contract has
security interest, Party A should ensure the notarization of the agreement of
security interest, registration of the security interest and complete other
legal procedures according to Party B’s requirements, and the security interest
is valid. 

5. No occurrence of any event of default. 

Chapter 6. Loan Repayment 

Article12. Party A will repay the full principal and accrued interest of the
loan on June 2nd, 2011 in lump sum according to the contract. 

If the maturity date is a legal holiday, the maturity date will be the next
working day. 

Article13. Party A should repay the full principal and
accrued interest of the loan under the contract. If Party A fails to repay the
full principal and interest promptly, Party B is entitled to deduct any expenses
occurred, interest of the loan, and principal of the loan from any Party A’s
accounts within Party B. 

3 

Article14. If the fund that Party A repays to Party B is not enough, the fund
should be used to repay for the expenses occurred first, then the interest of
the loan, and the principal of the loan finally. 

Article15. If Party A desires to prepay the loan, it should provide written
application to Party B 30 days before the repayment and obtain Party B’s written
consent. 

Article16. If Party A desires to extend the term of the loan, it should
provide written application to Party B 30 days before and obtain Party B’s
written consent. 

Chapter 7. Guarantee 

Article17. The loan under the contract is subject to the Comprehensive Credit
Facility Agreement, between Party A and Party B, dated June 3, 2010. 

Article18. Party B should enter into a separate guarantee agreement with the
guarantor. 

Chapter 8. Expenses and Compensation 

Article19. Party A should bear all the expenses that related
to loan contract and the guarantee contract, including but not limited to legal
services, accounting services, auditing, insurance, notarization, appraisal,
evaluation, and registration fee. Upon Party B’s request, Party A should pay the
expenses described above. 

Article20. Upon Party B’s request, Party A should immediately
pay off and compensate all costs and expenses that occurred under the contract,
including but not limited to litigation costs, attorney fees, travel fees and
other costs to make the claims. 

Chapter 9. Party A’s representations and warranties. 

Article21. Party A is a validly existing legal entity /other
organization formed in accordance with Chinese laws with independent civil
capacity, to enjoy full rights, authority and powers to operate business
activities with all of its assets to bear civil liability. 

Article22. Party A has full rights, authorization and powers
to sign the contract and carry out transactions contemplated by the contract,
and has taken or obtained all necessary corporate acts and other actions and
agreement to authorize the execution and performance of the contract. The
contract is effective by the effective signature of Party A’s legal
representative or the agent and with official seal. 

Article23. Party A has obtained all the necessary government
approvals and third-party consent for executing the contract. The act of
execution of contract by Party A and the performance of the contract will not
violate the constitutive documents/approval (if any) of the legal entity and as
a party to any other contracts or agreements. 

Article24. All the documents, information and evidence provided by Party A in
connection with the execution and performance of the contract are all true,
complete, accurate and effective. The financial statements provided by Party A
give a true reflection of Party A’s financial situation as they issued. 

4 

Article25. The contract is legally valid with legally binding obligations to
Party A. 

Article26. Party A opens an account with Party B, and the funds under the
contract are used through the account. 

Article27. To ensure the legality, validity, or enforceability of the
contract, Party A has completed or will complete all the necessary registration,
filing or notarization procedures. 

Article28. Party A was not involved in any litigation, arbitration or
administrative procedure which has substantial adverse impact on Party A’s
ability to perform the obligations under the contract. 

Article29. Party A’s representations and warranties must
always be accurate until the principal and interest loans under the contract are
paid fully, and Party A will be requested to provide the relevant documents from
time to time. 

Article30. There is no event of default of Party A. 

Article31. Party A has carefully read, fully understands and accepts the
contract. Party A desires to sign and fulfill the contract. 

Article32. Party A should provide true information pursuant to the
requirements of Party B, and cooperate with Party B for inspection and
investigation. 

Article33. Party A should accept and cooperate with Party B for inspection
and investigation of relevant operations, production and financial situation.

Article34. During the period of the contract, if the name and address of
Party A and legal representative have changed, Party A should provide Party B a
30-day notice. 

Article35. Before Party A pays off all the liabilities, in
event of any activities such as merger, acquisition, dissolution, and bankruptcy
to impact Party B’s right, Party A should provide Party B in written a
30-working day notice. 

Article36. During the period of the contract, without Party B’s consent,
Party A may not undertake any liabilities or guaranty that may adversely impact
on Party A’s ability to repay the loan. 

Article37. In event of any other events that may result in material adverse
impact on Party A’s normal business, Party A should inform Party B by written
form immediately. 

5 

Chapter 10. Event of default 

Article38. Any following event shall constitute an event of default. 

1. 
Party A fails to repay the principal and
interest of the loan timely according to the contract. 

2. 
Party A fails to use the loan in a way set
forth in the contract. 

3. 
Party A provides to Party B balance sheet,
income statement or other financial statements which are false or omitting
material facts, or refuses to accept the inspection and supervision of operation
and financial activities and the use of loan. 

4. 
The representations and warranties of
Party A or the guarantor are proved to be untrue or misleading. 

5. 
Party A or the guarantor defaulted in
other contracts. 

6. 
Deterioration of operation and financial
situation of Party A and the guarantor. 

7. 
The collateral under the contract is
depreciated, damaged or lost. 

8. 
Bankruptcy, liquidation, and dissolution
of Party A or the guarantor. 

9. 
Party A fails to inform Party B promptly
in the following situations: 

(1)
Any material change of its articles
of association or substantive change of business operations 

(2) 
Material change of its accounting policies

(3) 
Material change of its subsidiaries or
parent’s finance and operations. 

(4) 
Any litigation, arbitration or
administration procedure caused material adverse impact on Party A’s financial
situation. 

10. Party A breached any
other provisions of the contract, and failed to make any satisfactory remedy.

11. Any other events or
situation that substantially caused adverse impact on Party B’s right under the
contract. 

Article39. Party B is entitled to make the decision on whether
any event of default has taken place and notify Party A on this. In an event of
default, Party B is entitled to take one or more than one measures as follows:

1.
terminate the disbursement of the
loan. 

2.
declare the acceleration of the
loan and request Party A to repay all the outstanding principal of the loan,
accrued interest of the loan and other payables. 

3.
request Party A to increase or
change the guarantor and pledge. 

4.
deduct from any Party A’s accounts
with Party B the unpaid fund under the contract. 

5.
announce the exercise of any rights
under the guarantee contract. 

6.
any other measures deemed by Party
B as appropriate. 

Chapter 11. Miscellaneous 

Article40. Each party shall maintain any information obtained from the other
party confidential except for required by law. 

6 

Article41. Without Party B’s consent, Party A may not transfer all or part of
the obligations under the contract. 

Article42. Without Party A’s consent, Party B may transfer its rights under
the contract to any third party, provided that, Party B provides a written
notice to Party A after the transfer. 

Article43. Party A should repay full amount of the funds under the contract.

Article44. Any extension or preferential treatment provided
by Party B to Party A shall not be deemed as waiver of Party B’s rights under
the contract or affect or limit the rights of Party B according to the contract.

Article45. In any event that any provisions of the contract at any aspects
become illegal, invalid or unenforceable; other provisions of the contract will
not be affected. 

Article46. Any modification or supplement to the contract should be made in a
written form with both parties’ effective official seal. 

Article47. The subhead in the contract only for the purpose of reading that
can not be used for other purpose. 

Article48. Any notice or requirement by each party shall be made in written.

Article49. Any and all communications to be provided
hereunder shall be in writing and shall be deemed given and effective on the
earliest of (a) the date of transmission, if such communication is delivered via
facsimile (b) the third days after the date of transmission, if such
communication is delivered via registered mail or (c) upon actual receipt by the
party to whom such notice is required to be given, if sent by any means other
than facsimile or registered mail. 

Chapter12. Applicable law and resolving the arguments 

Article50. The contract is subject to Chinese laws, and interpreted according
to Chinese laws. 

Article51. Any disputes arising from the performance of the contact shall be
resolved through negotiation. Any dispute that may not be solved through
negotiation shall be submitted to the court with jurisdiction. 

Chapter13. Entry into force of the contract, changes and termination 

Article52. The contract is effective by the effective signature of both
Parties’ legal representatives or the agent and with official seal. 

Article53. After the contract becomes effective, any Party may not terminate
the contract or amend the contract without other party’s consent. 

7

Chapter14. Appendix 

Article54. Both parties can make other written agreement about the contract
as appendix of the contract. 

Chapter15. Supplementary provisions 

Article55. There are four original copies of this contract. Each of Party A
and the guarantor holds one, and the rest copies are held by Party B. 

Article56. The contract is signed at Tianjin Rural Cooperative Bank Kexing
Branch on June 3rd , 2010. 

 

	Party A (company
    seal): 	Party B (company
    seal): 
	 	 
	Legal representative:
    

    (or authorized agent) 	Legal representative
    (or person in charge): 

    (or authorized agent) 

 

 

8exhibit10-59.htm

    Exhibit No. 10.59

     

    SECOND AMENDMENT TO LOAN
AGREEMENT

     

    This Second Amendment dated
as of June ____, 2010, by and between The PrivateBank and Trust Company
(“Lender”), and Advanced Photonix, Inc. (“Borrower”).

     

    RECITALS

     

    The Lender and Borrower entered into that
certain Loan Agreement dated September 25, 2008, as amended by one amendment
(the “Agreement”). Capitalized terms not defined herein shall have the meanings
ascribed to them in the Agreement.

    Lender and Borrower desire to amend the
Agreement as set forth below.

    NOW, THEREFORE, Lender and
Borrower agree as follows:

     

    The following definitions in Section 1 of the
Agreement are amended to read as follows:

          “‘Base Net Worth’ shall initially be Eleven Million
Eight Hundred Thousand Dollars ($11,800,000). On the last day of each fiscal
year of Borrower, Base Net Worth shall increase by ten percent (10%) of Net
Income for the fiscal year then ended. If Net Income for any fiscal year is less
than $0, it shall be deemed to be $0 for purposes of this
calculation.”

     

         “‘Borrowing Base Amount’ shall mean an amount equal
to the sum of the following:

     

         (a)
eighty percent (80%) of the then net book value (after deducting any discount or
incentive for early payment or any issued or unissued credit memos but without
deducting any bad debt reserve) of all Eligible Accounts;
plus

     

         (b)
the lesser of: (i) fifty percent (50%) of the lower of cost or market value
(after deduction of such reserves and allowances as the Lender deems proper and
necessary) of Eligible Inventory; and (ii) $500,000.”

     

         “‘Debt Service Coverage Ratio’ shall mean as of any
date of determination thereof a ratio the numerator of which is Adjusted EBITDA
for the applicable measuring period, plus the net cash proceeds of the issuance
by Borrower of any Eligible Capital Securities during such period and the
denominator of which is all payments of principal with respect to interest
bearing debt during such period (including the principal component of
Capitalized Lease obligations), plus interest expense for such period (including
the interest component of Capitalized Lease obligations), all as determined on a
consolidated basis for Borrower and its consolidated Subsidiaries in accordance
with GAAP. The applicable measuring period shall be (i) for any date of
determination occurring before June 30, 2011, the three month period then ending
and (ii) the preceding twelve (12) months ending on such date for any date of
determination occurring on or after June 30, 2011.”

     

    74

     

    

    
    

    The following Section 6.1(f) is added to the
Agreement:

         “(f) Borrower shall deliver within thirty (30) days
after and as of the end of each month, its management-prepared financial
statement, including a consolidated balance sheet as of the end of such month, a
consolidated profit and loss statement for such month and fiscal year to date,
certified by a responsible authorized officer of Borrower, in a form acceptable
to Lender; provided, however, that the reporting requirements set forth in this
Section 6.1(f) shall not apply for any month that ends on a date that coincides
with the end of a fiscal quarter.”

     

    Section 6.5 of the Agreement is amended to
read as follows:

              “6.5
Financial Covenants.

     

         (a)
Borrower shall maintain at all times a Debt Service Coverage Ratio of not less
than the following amounts for the periods specified below:

     

    June 30, 2010 1.00 to 1.0
September 30, 2010 1.00
to 1.0
December 31, 2010 1.00 to 1.0
March 31, 2011 and thereafter 1.20 to
1.0

     

         (b)
Borrower shall maintain at all times Adjusted EBITDA of not less than the
following amounts for the periods specified below:

     

    June 30, 2010 $190,000
September 30, 2010
$190,000
December 31, 2010 $260,000
March 31, 2011
$400,000
June 30, 2011 and thereafter
$1,160,000

     

         Adjusted EBITDA shall be determined on a trailing
three (3) month basis for the June 30, 2010 through March 31, 2011 test dates
and thereafter on a trailing twelve month basis.

     

         (c)
Borrower shall maintain at all times Net Worth of not less than the following
amounts during the periods specified below:

     

    June 30, 2010 through September 29, 2010
$13,000,000
September 30, 2010 through December 30, 2010
$12,500,000
December 31, 2010 through March 30, 2011 $12,100,000
March 31,
2011 and thereafter Base Net Worth”

     

    Section 6.24 of the Agreement is amended to
read as follows:

         “6.24 Bank Accounts. Borrower shall and shall cause
each of its Subsidiaries to maintain all primary deposit accounts at Lender and
Borrower shall maintain at all times in a blocked account maintained with the
Lender an amount of at least $500,000. Borrower grants to the Lender a first
priority security interest in such account.”

     

    75

     

    

    
    

    Section 6.28 of the Account is amended to read
as follows:

         “6.28 Picometrix Debt.
Borrower shall not and shall cause its Subsidiaries not to make any payment with
respect to the existing indebtedness owed to the former shareholders of
Picometrix (“Picometrix Debt”) unless (a) Borrower is in pro forma compliance
with all financial covenants under this Agreement both before and after giving
effect to such payment (b) no Event of Default (or event which with the giving
of notice or the passage of time or both would constitute an Event of Default)
has occurred and is continuing and (c) Borrower shall have provided to the
Lender at least thirty (30) days prior written notice that the payment is to be
made with respect to the Picometrix Debt. At least ten (10) days prior to making
any such payment, Borrower shall provide to Lender a covenant compliance
certificate giving pro forma effect to such payment. Borrower shall not use more
than fifty percent (50%) of the proceeds of the issuance of any equity interests
to make payments with respect to the Picometrix Debt.”

     

    Borrower violated the provisions of Section
6.5 of the Agreement for the fiscal quarters ended December 31, 2009 and March
31, 2010 (the “Covenant Violations”). The Lender hereby waives any event of
default under the Agreement resulting from the Covenant Violations. This waiver
shall not be deemed to amend or alter in any respect the terms and conditions of
the Agreement or any of the other loan documents, or to constitute a waiver or
release by the Lender of any right, remedy or event of default under the
Agreement or any of the other loan documents, except to the extent expressly set
forth above. Furthermore, this waiver shall not affect in any manner whatsoever
any rights or remedies of the Lender with respect to any other non-compliance by
the Borrower with the Agreement or the other loan documents whether in the
nature of an event of default or otherwise, and whether now in existence or
subsequently arising.

    Borrower will reimburse the Lender for all
costs and expenses, including reasonable attorneys’ fees, incurred by the Lender
in connection with the preparation of this Amendment and the documents,
instruments and agreements executed in connection herewith.

    Borrower hereby represents and warrants that,
after giving effect to the amendments and waiver contained herein, (a)
execution, delivery and performance of this Amendment and any other documents
and instruments required under this Amendment or the Agreement are within
Borrower’s powers, have been duly authorized, are not in contravention of law or
the terms of Borrower’s Articles of Incorporation or Bylaws, and do not require
the consent or approval of any governmental body, agency, or authority; and this
Amendment and any other documents and instruments required under this Amendment
or the Agreement, will be valid and binding in accordance with their terms; (b)
the continuing representations, warranties and covenants of Borrower set forth
in Section 5 of the Agreement and any other documents, instruments or agreements
executed in connection therewith, are true and correct on and as of the date
hereof with the same force and effect as if made on and as of the date hereof;
and (c) no event of default, or condition or event which, with the giving of
notice or the running of time, or both, would constitute an event of default
under the Agreement, has occurred and is continuing as of the date
hereof.

     

    76

     

    

    
    

    BORROWER WAIVES, DISCHARGES, AND FOREVER RELEASES LENDER, LENDER’S
EMPLOYEES, OFFICERS, DIRECTORS, ATTORNEYS, STOCKHOLDERS, AND THEIR SUCCESSORS
AND ASSIGNS, FROM AND OF ANY AND ALL CLAIMS, CAUSES OF ACTION, ALLEGATIONS OR
ASSERTIONS THAT BORROWER HAS OR MAY HAVE HAD AT ANY TIME UP THROUGH AND
INCLUDING THE DATE OF THIS AMENDMENT, AGAINST ANY OR ALL OF THE FOREGOING,
REGARDLESS OF WHETHER ANY SUCH CLAIMS, CAUSES OF ACTION, ALLEGATIONS OR
ASSERTIONS ARE KNOWN TO COMPANIES OR WHETHER ANY SUCH CLAIMS, CAUSES OF ACTION,
ALLEGATIONS OR ASSERTIONS AROSE AS RESULT OF LENDER’S ACTIONS OR OMISSIONS IN
CONNECTION WITH THE AGREEMENT OR ANY OTHER DOCUMENTS, INSTRUMENTS OR AGREEMENTS
IN CONNECTION THEREWITH, OR ANY AMENDMENTS, EXTENSIONS OR MODIFICATIONS THERETO,
OR BANK’S ADMINISTRATION OF THE DEBT UNDER THE AGREEMENT OR
OTHERWISE.

     

    This Amendment shall be effective upon (a) the
execution by Borrower and Lender of this Amendment, (b) execution by the
Guarantors of the attached Affirmation of Guaranty, (c) execution by Borrower of
replacement notes in form acceptable to Lender, and (d) payment by Borrower to
Lender of a non-refundable amendment fee in the amount of
$30,000.

    Borrower agrees to provide to Lender within 60
days after the execution of this Amendment evidence satisfactory to Lender that
the documents related to the Picometrix Debt have been amended to provide that
the required December 1, 2010 principal payment and maturity date of the
Picometrix Debt have been deferred until at least April 1, 2011. Failure to
comply with the provisions of this Section 11 shall be an Event of Default under
the Agreement.

    Except as modified hereby, all of the terms
and conditions of the Agreement shall remain in full force and
effect.

    This Amendment may be executed and
acknowledged in counterparts, each of which shall constitute an original and all
of which shall together constitute one and the same
Amendment.

     

    77

     

    

    
    

    THE PRIVATEBANK AND TRUST ADVANCED PHOTONIX,
INC.
COMPANY

     

    By:_By:_

     

    Its:_Its:_

     

    By:_

     

    Its:_

     

    AFFIRMATION OF
GUARANTY

     

    The undersigned acknowledge
the foregoing Second Amendment to Loan Agreement, and ratify and confirm their
obligations under their Guaranty of Borrower’s obligations to the Lender and
acknowledge that the Guaranty remains in full force and effect in accordance
with its terms subject to no setoff, defense or counterclaim.

     

    June ____, 2010 SILICON SENSORS, INC.

     

    
      	By:_
	 
	Its:_
	 
	 
	By:_
	 
	Its:_
	 
	 
	 
	PICOMETRIX LLC
	 
	 
	By:_
	 
	Its:_
	 
	 
	By:_
	 
	Its:_

    

    78

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